Both parties are in fantasy land – but Sunak’s tax attack on Labour is rich given what his government has cost voters
Before we get on to any of the numbers – from Rishi Sunak’s claim about Labour raising taxes by £2,000 to the more outlandish numbers going around today – here’s the most important thing you have to know right now.
The parties fighting this election have yet to publish their manifestos. They might come as soon as next week, but until those documents, with their shopping lists of confirmed policies, actually land, we are in a kind of policy no man’s land where each side is guessing (and sometimes plain making up stuff) about what the other side actually wants to implement if they win the election.
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And since all parties like to talk a lot about exciting new things they’d spend money on and not half as much about the taxes they’d raise to pay for all that stuff, it doesn’t take a mathematical whizz to realise that if you take them all quite literally then you can impute some pretty big “black holes” in their plans.
Those “black holes” matter because both Labour and Conservatives have signed up to fiscal rules preventing them from splurging without limit. So if there is a hole, the assumption is it would have to be filled by raising taxes.
However, in the absence of either manifestos or detailed costing plans, the best we can do about all this for the time being is to speculate.
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Does Sunak’s claim about Labour taxes stand up?
That brings us back to the claim Rishi Sunak made in last night’s debate, that Labour will raise everyone’s taxes by £2,000. This is a direct consequence of this information vacuum.
It comes from a “dossier” published by the Tories last month, back before the election was called, which purported to calculate all Labour’s proposed tax and spending plans.
The headline finding from that paper was that over the course of the next four years Labour had roughly £59bn of spending plans (at least as far as the Tories claimed) but only £20bn of revenue raising plans. That leaves a £39bn hole. Divide that £39bn by the number of households in the country (18.4m) and you get a figure of just over £2,000. Voila: £2,000 of unaccounted tax rises or spending cuts which, said Rishi Sunak last night, would inevitably be filled with extra taxes.
Now, there are all sorts of objections to the way the Conservatives have carried out this exercise. For one thing, they deployed a weapon Labour don’t have: because they’re the party of government they were able to ask Treasury civil servants to cost some of the Labour policies (or rather, the policies they think Labour will implement – remember, those manifestos haven’t yet been published!).
Today there has been a backlash – including from the Treasury’s permanent secretary himself – about the way the Tories have portrayed these sums.
What the Tories have already cost households
The £2,000 figure isn’t really a Treasury calculation or for that matter an “independent” one, as Mr Sunak called it last night. It’s a Conservative figure – but it was put together in part with figures commissioned from civil servants.
There were other objections: Labour say many of the policies in that Tory dossier won’t cost half as much as the Conservatives claim.
But actually, surprising as it might sound, what’s most striking about this “bombshell” is how small it really is. Less of a bombshell; more of a hand grenade.
While £2,000 sounds like a big number, it’s actually a cumulative total from four years. A far more representative figure to take from the dossier is £500 – the annual figure.
And while that’s not to be sniffed at (if you believe it – which you probably shouldn’t) it’s far, far smaller than the tax rises we’ve all experienced under this Conservative government since 2019. They amount, all told, to an average of around £3,000 a year per household or, if we grit our teeth and tot it up as the Tories did in their dossier, over £13,000 over the course of the parliament. Which rather dwarfs that £2,000 figure.
Labour attack dossier is even more outlandish
So anyway, you’re probably hoping now we’ve explained the £2,000 from last night that we could leave things there. But sorry, no.
Because, this being the murky pre-manifesto period, Labour have gone one further and produced their own dossier, purporting to show Conservative fiscal plans for the coming years. But while the initial Tory document was somewhat conservative (with a small c) about its numbers, the Labour version is far more outlandish.
It assumes, for instance, that the Conservatives are planning to abolish National Insurance and inheritance tax overnight if they are elected. These are mammoth tax changes which the Conservatives have never committed to (they have made some vague noises about intending to abolish NICs but not in the next parliament).
Anyway, the Labour document takes these and other policies and works out that that would imply a black hole of roughly £70bn a year or a whopping £270bn when you tot up the first four years of the parliament (they actually provide five years of numbers but for the sake of comparability I’m looking solely at the first four years, as the Tories’ dossier did).
Divide that by the number of households (as the Tory document did) and you end up with a grand total over those four years not of £2,000 but of a staggering £14,000 per household.
Parties trading blows in the realms of fiscal fantasy
At this stage, now we’ve completely departed from realistic policy, you’re probably wondering when this silly saga will be over. Sadly the answer is: not yet.
Because having seen the Labour response, the Conservatives produced a second dossier, essentially saying: “Well, if you’re going to make all sorts of outlandish assumptions about the stuff we’ve vaguely talked about then can we have a go too?”
This final dossier includes all sorts of policies no one seriously expects Labour to implement this parliament: cutting corporation tax to 12.5%, scrapping business rates altogether, introducing French-style union laws. Add this all up and you end up with a grand total of £211bn a year or – if you multiply that by four years across a parliament, £844bn. So the best part of a trillion pounds.
We are of course in the realms of fiscal fantasy at this stage, but if you take that cumulative total and divide that by the number of households in the country you end up with an utterly ridiculous figure of £46,000.
Whether either party thinks these dossiers will change anyone’s mind in this election remains to be seen.
Right now they mostly look like an attempt to send economics correspondents completely crazy.
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Both major parties are committed to tax rises
But the overarching point is as follows: both the major parties are committed to tax rises in the coming years. We know as much because the official Office for Budget Responsibility plans will see the tax burden increase sizeably, in large part because the main tax-free allowances are being frozen, ensuring everyone ends up paying more tax, once you adjust for inflation and rising wages.
These tax rises – the long-term consequences of the pandemic and the energy price guarantee – are quite likely to dwarf any measures we hear about in the coming manifestos.
But until we get those manifestos, the rest is, yes, speculation.
A care worker who reported the alleged abuse of an elderly care home resident, which triggered a criminal investigation, is facing destitution and potential removal from Britain after speaking up.
“Meera”, whose name we have changed to protect her identity, said she witnessed an elderly male resident being punched several times in the back by a carer at the home where she worked.
Sky News is unable to name the care home for legal reasons because of the ongoing police investigation.
“I was [a] whistleblower there,” said Meera, who came to the UK from India last year to work at the home.
“Instead of addressing things, they fired me… I told them everything and they made me feel like I am criminal. I am not criminal, I am saving lives,” she added.
‘Meera’ spoke up about abuse she said she witnessed in the care home where she worked
Like thousands of foreign care workers, Meera’s employer sponsored her visa. Unless she can find another sponsor, she now faces the prospect of removal from the country.
“I am in trouble right now and no one is trying to help me,” she said.
Meera said she reported the alleged abuse to her bosses, but was called to a meeting with a manager and told to “change your statement, otherwise we will dismiss you”.
She refused. The following month, she was sacked.
The care home claimed she failed to perform to the required standard in the job.
She went to the police to report the alleged abuse and since then, a number of people from the care home have been arrested. They remain under investigation.
‘Migrants recruited because many are too afraid to speak out’
The home has capacity for over 60 residents. It is unclear if the care home residents or their relatives know about the police investigation or claim of physical abuse.
Since the arrests, the regulator, the Care Quality Commission (CQC), carried out an investigation at the home triggered by the concerns – but the home retained its ‘good’ rating.
Meera has had no reassurance from the authorities that she will be allowed to remain in Britain.
In order to stay, she’ll need to find another care home to sponsor her which she believes will be impossible without references from her previous employer.
She warned families: “I just want to know people in care homes like these… your person, your father, your parents, is not safe.”
She claimed some care homes have preferred to recruit migrants because many are too afraid to speak out.
“You hire local staff, they know the legal rights,” she said. “They can complain, they can work anywhere… they can raise [their] voice,” she said.
Sky’s Becky Johnson spoke to ‘Meera’
Sky News has reported widespread exploitation of care visas and migrant care workers.
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Currently migrants make up around a third of the adult social care workforce, with the majority here on visas that are sponsored by their employers.
As part of measures announced in April in the government’s immigration white paper, the care visa route will be closed, meaning care homes will no longer be able to recruit abroad.
‘Whole system is based on power imbalance’
But the chief executive of the Work Rights Centre, a charity that helps migrants with employment issues, is warning that little will change for the tens of thousands of foreign care workers already here.
“The whole system is based on power imbalance and the government announcement doesn’t change that,” Dr Dora-Olivia Vicol told Sky News.
She linked the conditions for workers to poor care for residents.
Work Rights Centre CEO Dr Dora-Olivia Vicol
“I think the power that employers have over migrant workers’ visas really makes a terrible contribution to the quality of care,” she said.
Imran agrees. He came to the UK from Bangladesh, sponsored by a care company unrelated to the one Meera worked for. He says he frequently had to work 14-hour shifts with no break because there weren’t enough staff. He too believes vulnerable people are being put at risk by the working conditions of their carers.
Migrant workers ‘threatened’ over visas
“For four clients, there is [a] minimum requirement for two or three staff. I was doing [it] alone,” he said, in broken English.
“When I try to speak, they just directly threaten me about my visa,” he said.
“I knew two or three of my colleagues, they are facing the same issue like me. But they’re still afraid to speak up because of the visa.”
A government spokesperson called what happened to Imran and Meera “shocking”.
“No one should go to work in fear of their employer, and all employees have a right to speak up if they witness poor practice and care.”
James Bullion, from the CQC, told Sky News it acts on intelligence passed to it to ensure people stay safe in care settings.
Additional research by Leah Adin
Donald Trump may be denied the honour of addressing parliament on his state visit to the UK later this year, with no formal request yet submitted for him to be given that privilege.
It comes after President Macron’s successful state visit this week, in which he was invited to speak in front of both Houses of Parliament.
Sky News has been told the Speaker of the House of Commons, Sir Lindsay Hoyle, hasn’t so far received a request to invite the US president to speak in parliament when he is expected to visit in September.
It was confirmed to MPs who have raised concerns about the US president being allowed to address both houses.
Kate Osborne, Labour MP for Jarrow and Gateshead East, wrote to the speaker in April asking him to stop Mr Trump from addressing parliament, and tabled an early-day motion outlining her concerns.
“I was happy to see Macron here but feel very differently about Trump,” she said.
“Trump has made some very uncomfortable and worrying comments around the UK government, democracy, the Middle East, particularly around equalities and, of course, Ukraine.
“So, I think there are many reasons why, when we’re looking at a state visit, we should be looking at why they’re being afforded that privilege. Because, of course, it is a privilege for somebody to come and address both of the houses.”
But the timing of the visit may mean that any diplomatic sensitivities, or perceptions of a snub, could be avoided.
France’s President Emmanuel Macron addressed parliament during his state visit this month
Lord Ricketts, a former UK ambassador to France, pointed out that parliament isn’t sitting for much of September, and that could help resolve the issue.
In 2017, he wrote a public letter questioning the decision to give Donald Trump his first state visit, saying it put Queen Elizabeth II in a “very difficult position”.
Parliament rises from 16 September until 13 October due to party conferences.
The dates for the state visit haven’t yet been confirmed by Buckingham Palace or the government.
However, they have not denied that it will take place in September, after Mr Trump appeared to confirm they were planning to hold the state visit that month. The palace confirmed this week that the formal planning for his arrival had begun.
With the King likely to still be in Scotland in early September for events such as the Braemar Gathering, and the anniversary of his accession and the death of Queen Elizabeth on the 8th September, it may be expected that the visit would take place sometime from mid to the end of September, also taking into consideration the dates of the Labour Party conference starting on the 28th September and possibly the Lib Dem’s conference from the 20th-23rd.
Mr Trump has said he believes the trip to the UK will take place in September. Pic: Reuters
When asked about parliamentary recess potentially solving the issue, Ms Osborne said: “It may be a way of dealing with it in a very diplomatic way… I don’t know how much control we have over Trump’s diary.
“But if we can manoeuvre it in a way that means that the House isn’t sitting, then that seems like a good solution, maybe not perfect, because I’d actually like him to know that he’s not welcome.”
A message from the speaker’s office, seen by Sky News, says: “Formal addresses to both Houses of Parliament are not automatically included in the itinerary of such a state visit.
“Whether a foreign head of state addresses parliament, during a state visit or otherwise, is part of the planning decisions.”
Mr Trump made his first state visit to the UK in June 2019 during his first presidency. File pic: Reuters
It’s understood that if the government agrees to a joint address to parliament, the Lord Chamberlain’s office writes to the two speakers, on behalf of the King, to ask them to host this.
It will be Mr Trump’s second state visit.
During his first, in 2019, he didn’t address parliament, despite the fact that his predecessor, Barack Obama, was asked to do so.
It was unclear if this was due to the fact John Bercow, the speaker at the time, made it clear he wasn’t welcome to do so.
However, it didn’t appear to dampen Mr Trump’s excitement about his time with the Royal Family.
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Speaking earlier this year, he described his state visit as “a fest” adding “it’s an honour… I’m a friend of Charles, I have great respect for King Charles and the family, William; we have really just a great respect for the family. And I think they’re setting a date for September.”
It is expected that, like Mr Macron, the pageantry for his trip this time will revolve around Windsor, with refurbishment taking place at Buckingham Palace.
Liverpool have retired the number 20 shirt in honour of Diogo Jota – the first time it has made such a gesture.
The club said it was a “unique tribute to a uniquely wonderful person” and the decision was made in consultation with his wife and family.
The number 20 will be retired at all levels, including the men’s and women’s first teams and academy squads.
A statement said: “It was the number he wore with pride and distinction, leading us to countless victories in the process – and Diogo Jota will forever be Liverpool Football Club’s number 20.”
The club called it a “recognition of not only the immeasurable contribution our lad from Portugal made to the Reds’ on-pitch successes over the last five years, but also the profound personal impact he had on his teammates, colleagues and supporters and the everlasting connections he built with them”.
Jota’s wife joined Liverpool players to view tributes at Anfield on Friday. Pic: Liverpool FC
Pic: Liverpool FC
Newly-married Jota died alongside his brother when his Lamborghini crashed in northern Spain on 3 July.
Police said this week that all the evidence so far suggests Jota was the one driving the vehicle.
Liverpool teammates joined members of Jota’s family, including his wife Rute, at a huge memorial site outside Anfield on Friday.
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A fan looks at messages on a memorial wall near Anfield. Pic: Reuters
Virgil van Dijk and Andy Robertson were among players at the funeral. Pic: Reuters
The star’s funeral took place last weekend, with Liverpool colleagues and members of the Portuguese national team in attendance.
Reds captain Virgil van Dijk carried a shirt bearing the number 20 made from flowers.
Liverpool players returned to the club’s training ground for the start of pre-season on Tuesday.
Their first game since Jota’s death will be on Sunday when they play a friendly away against Preston North End.
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